SUVs - Vietnam

Vietnam

Revenue in the SUVs market is projected to reach €2,582m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.25%, resulting in a projected market volume of €2,748m by 2029.
SUVs market unit sales are expected to reach 85.9k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to €31k.
From an international perspective it is shown that the most revenue will be generated in the United States (€309bn in 2024).

Key regions: United States, Germany, United Kingdom, India, China

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Analyst Opinion

The SUVs market in Vietnam has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Vietnam, customers have shown a strong preference for SUVs due to their versatility, spaciousness, and perceived safety features. SUVs offer a higher seating position, which provides a better view of the road and a sense of security. Additionally, the ample cargo space appeals to customers who prioritize practicality and convenience. As Vietnam's middle class continues to expand, more consumers are opting for SUVs as a symbol of status and success.

Trends in the market: One noticeable trend in the SUVs market in Vietnam is the increasing demand for compact and mid-size SUVs. These smaller SUVs offer a balance between fuel efficiency and functionality, making them ideal for urban environments where traffic congestion is a common issue. The rise of ride-sharing services has also contributed to the popularity of compact SUVs, as they provide ample space for passengers and their luggage. Another trend in the market is the growing interest in electric and hybrid SUVs. As environmental concerns become more prominent, Vietnamese consumers are increasingly looking for greener alternatives. Electric and hybrid SUVs offer lower emissions and reduced fuel consumption, making them attractive options for eco-conscious buyers. The government's push for electric vehicle adoption through incentives and infrastructure development has further fueled the demand for these vehicles.

Local special circumstances: Vietnam's road infrastructure is undergoing significant improvements, with new highways and expressways being constructed. This infrastructure development has made SUVs more appealing to Vietnamese consumers, as they offer better handling and comfort on long journeys. Additionally, the country's diverse geography, which includes mountainous regions and coastal areas, makes SUVs a practical choice for navigating different terrains.

Underlying macroeconomic factors: Vietnam's strong economic growth and rising disposable incomes have contributed to the expansion of the SUVs market. As more people enter the middle class, they have greater purchasing power and are able to afford higher-end vehicles like SUVs. Additionally, favorable government policies and trade agreements have made SUVs more accessible and affordable for consumers. In conclusion, the SUVs market in Vietnam is experiencing robust growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Compact and mid-size SUVs are in high demand, while electric and hybrid SUVs are gaining popularity. The improving road infrastructure and rising disposable incomes are further driving the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).